Waters on Firm Start for 2016

Waters Corporation reported a 3% increase in sales for the first quarter of $475 million compared to $460 million in the same period last year first quarter of 2015, although foreign currency translation offset sales by approximately 2%. While earnings per diluted share (EPS) on a GAAP basis were flat at $1.15 compared to 2015, on a non-GAAP basis including adjustments, EPS increased 4% to $1.26 from $1.21 a year ago. A description and reconciliation of GAAP to non-GAAP EPS can be found on the Company’s website at http://www.waters.com under the caption “Investors”.

Commenting on the Company’s performance, Christopher J. O’Connell, President and Chief Executive Officer said, “We are pleased with our solid start to 2016, led by continued strength in bio/pharmaceutical end markets and balanced contribution from key products and geographies. Furthermore, strong operational execution enabled earnings per share growth while we continued key investments in innovation.”

Results from the Company’s end markets were highlighted by 9% constant currency sales growth from the broadly defined bio/pharmaceutical market, offset by flat performance in other markets.

The Company’s recurring revenues, the combination of service and consumables, posted 8% constant currency sales growth in comparison to a strong prior year’s result, while instrument system sales grew more slowly and were up about 2% in the quarter.

Regionally, the Company’s highest geographical growth in the quarter came from Asia, which posted an 11% constant currency sales growth rate, with continued strong demand from China and India. Sales in the U.S. and Europe, in constant currency, grew more modestly and increased by 2% in the quarter.